CNB Community Bancorp, Inc. Reports Third Quarter 2025 Results Amid Growth in Core Banking Metrics and Strategic Initiatives
October 2025 — CNB Community Bancorp, Inc. (OTCQX: CNBB), the parent company of County National Bank (“CNB” or “the Bank”), released its financial results for the three and nine months ended September 30, 2025, reporting steady balance sheet growth, rising deposits, and strategic investments aimed at strengthening long-term profitability, despite a modest year-over-year decline in net income.
The Company reported third-quarter earnings of $3.2 million, representing a decrease of $287,000, or 8.3%, from the $3.5 million earned during the same period in 2024. The dip in quarterly earnings was primarily driven by an increase in noninterest expenses, including higher compensation and benefits, as well as occupancy and equipment costs—expenses that reflect both inflationary pressures and continued investment in operational growth.
These increases were partially offset by stronger net interest income and noninterest income, particularly from gains in Wealth Management and loan sales, underscoring the resilience of CNB’s diversified revenue model.
Basic earnings per share (EPS) stood at $1.55 for the quarter, down from $1.59 a year earlier. For the nine months ended September 30, 2025, CNB reported net income of $8.8 million, compared to $9.1 million in the same period of 2024. Despite the slight decline in total profit, basic EPS rose to $4.32, up from $4.20, supported by the company’s ongoing share repurchase program.
Solid Financial Position Amid Market Challenges
In a year characterized by mixed macroeconomic conditions—rising interest rate volatility, labor cost pressures, and evolving credit environments—CNB demonstrated its ability to maintain stability across key financial metrics.
The Company’s annualized return on average assets (ROA) decreased modestly to 0.96% for the third quarter, compared to 1.10% in the prior-year period. Similarly, the return on average equity (ROE) fell to 11.89%, down from 12.99%. For the first nine months of 2025, ROA measured 0.91%, while ROE stood at 11.49%, both slightly below the prior year’s performance but consistent with regional banking peers navigating similar market conditions.
Despite modest earnings compression, book value per share showed strong growth, increasing to $52.66 as of September 30, 2025—up $4.50 or 9.3% from $48.16 a year earlier. The increase in book value reflects CNB’s disciplined capital management and steady balance sheet expansion.
CEO Perspective: Strategic Share Buybacks and Growth Investments
Commenting on the quarterly performance, Joseph R. Williams, President and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, expressed confidence in the Company’s long-term strategy.
“We just completed another tender offer for our shares as we continue to see value in buying CNB at the current market valuation,” Williams said. “We purchased just over 56,000 shares at $44.09, while our tangible book value at the end of the third quarter stood at $51.36 per share. That demonstrates the underlying strength of our balance sheet and the opportunity we see for long-term shareholder value creation.”
Williams added that CNB strategically leveraged its holding company structure to optimize capital deployment.
We were able to add some debt at the holding company that allowed us to downstream capital to our Bank for the purpose of leveraging more of our balance sheet with the purchase of prudent investments,” he noted. “These actions are designed to contribute meaningfully to CNB’s earnings in 2025 and beyond.”
The CEO emphasized that the Company’s continued progress is supported by its community-focused business model, as well as the commitment of its Board of Directors, Advisory Boards, and Associates.
“Our success is deeply rooted in our presence across both new and existing communities,” Williams said. “The dedication of our teams and the guidance of our leadership have enabled CNB to continue growing responsibly. I believe in these efforts and look forward to closing 2025 on a strong note while preparing for the challenges and opportunities that 2026 will bring.”
Third Quarter Financial Highlights
CNB’s latest results reflect a balanced mix of growth in loans and deposits, increased equity value, and strategic reinvestment across the business. The following highlights capture key movements across major financial categories:
- Total Assets: Increased $59.9 million, or 4.8%, year-over-year to $1.32 billion as of September 30, 2025. Compared to December 31, 2024, assets rose $36.1 million, or 2.8%, reflecting both organic loan growth and prudent investment portfolio expansion.
- Net Loans: Climbed $31.8 million, or 3.1%, to $1.07 billion compared to $1.04 billion a year earlier. From year-end 2024, loans increased $35.7 million, or 3.5%, supported by steady commercial and residential lending activity.
- Total Deposits: Surged $73.2 million, or 7.0%, year-over-year to $1.12 billion, indicating continued confidence among retail and commercial customers. Since December 2024, deposits have grown by $21.3 million, or 1.9%, aided by strong client retention and competitive banking solutions.
- Book Value per Share: Rose $4.50, or 9.3%, year-over-year to $52.66, demonstrating effective capital management and consistent profitability.
- Total Equity: Increased $7.0 million to $104.9 million as of September 30, 2025, reinforcing CNB’s solid capital position and capacity to support future growth.
- Net Income: Declined $287,000, or 8.3%, to $3.2 million for the quarter, primarily due to higher noninterest expenses, while earnings per share (EPS) decreased by $0.04, or 2.6%, to $1.55.
- Net Interest Income: Grew $665,000 to $12.4 million, illustrating the benefits of strategic asset-liability management despite a competitive rate environment.
- Pre-Tax, Pre-Provision Net Income: Declined slightly to $4.2 million, compared with $4.6 million a year earlier, reflecting increased operational investments aimed at supporting long-term scalability.
Core Banking Growth Supported by Community Focus
County National Bank’s reputation as a trusted community banking partner continues to underpin its financial performance. With a strong footprint across Michigan, the Bank has built enduring relationships with local businesses, homeowners, and nonprofit organizations, driving loan and deposit growth even as industry competition intensifies.
The Bank’s growth strategy emphasizes relationship-based banking, supported by a full suite of commercial, consumer, and mortgage lending solutions, as well as expanding Wealth Management services. The third quarter saw notable growth in noninterest income from Wealth Management operations, reflecting client demand for financial planning and investment guidance in a volatile market.
Loan growth was diversified across both commercial and consumer segments, with management maintaining a conservative approach to credit risk. CNB’s disciplined lending standards and community engagement have helped maintain asset quality and deposit stability.
Strengthening Capital and Shareholder Value
CNB’s ongoing share repurchase initiatives demonstrate management’s confidence in the Company’s intrinsic value. The latest tender offer—repurchasing over 56,000 shares at $44.09—was completed well below the Company’s tangible book value per share of $51.36, representing an accretive transaction for shareholders.
The move also reflects a broader strategy of capital optimization. By issuing moderate holding company debt and channeling proceeds into the Bank, CNB has enhanced its ability to fund investments and optimize its balance sheet for earnings growth.
Such steps underscore the Company’s long-term philosophy: to build shareholder value not through aggressive expansion, but through disciplined growth, local market leadership, and prudent financial management.
Operational Efficiency and Expense Management
While higher compensation, benefits, and occupancy costs weighed on quarterly earnings, these expenses are viewed as strategic investments in CNB’s workforce and physical footprint.
Like many regional financial institutions, CNB continues to navigate wage inflation, regulatory compliance costs, and technology investments necessary to remain competitive. However, these expenditures are expected to yield returns through enhanced customer experience, digital engagement, and operational efficiency.
The Bank’s commitment to modernizing its systems and branch infrastructure aligns with broader industry trends where community banks are investing in technology to complement their personal service advantage.
As CNB integrates digital enhancements while preserving its local touch, the Company is positioning itself for long-term operational leverage—particularly as deposit growth continues and interest rate environments stabilize.
nagement intends to pursue operational efficiency improvements to manage rising expenses while enhancing customer satisfaction
A Steady Course Through an Evolving Banking Landscape
CNB Community Bancorp’s third-quarter results highlight a consistent narrative—steady, community-driven growth amid broader industry challenges. The Company’s approach blends financial prudence with strategic investment, ensuring that growth in core areas like deposits, lending, and wealth management translates into long-term profitability.
Even with short-term earnings compression, CNB’s strengthening capital position, expanding asset base, and rising book value reflect a fundamentally healthy institution poised for continued success.
As the Company looks ahead to 2026, it remains anchored by its mission to serve customers and communities while delivering enduring value to shareholders—a strategy that has sustained CNB’s growth for generations and continues to define its future.
